international-online-orders

Guide to: International online orders

Thanks to the continuous development in web-based marketplaces, we can have just about anything from anywhere in the world delivered to our doorstep. No wonder international e-commerce sites like Amazon, Shein and Etsy are such popular shopping destinations for South Africans.

Making clothing, electronic and lifestyle purchases online does have an element of uncertainty though. Especially if the seller is in a different country.

Here are the questions we hear most often regarding international online shopping.

Can I pay for any online order with my credit card?

According to the South African Reserve Bank (SARB) guide on exchange control, individuals with locally issued credit and/or debit cards are permitted to use it for foreign currency payments on small transactions, like imports over the Internet. However, payments are limited to R50 000 per transaction, and a transaction for the same import my not be split over two payments to circumvent this limit.

Payments over the R50,000 must go through an authorized dealer, such a foreign exchange broker.

As long as your purchase falls within the R50,000 limit, and the seller is prepared to accept your credit card, you are legally allowed to make the payment.

Is it safe to place international online orders?

Purchasing goods online can be a convenient and cost-effective way of buying items you want. However, it does make you prey to internet scammers.

With international transactions there are very few steps you can take if the transaction ends up being fraudulent. So, it is better to be safe than sorry.

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Recommended ways avoid fraudulent online sellers

Buy only from reputable sellers.

Big companies won’t turn into fraudsters overnight. If you stick to big, well-known sellers like Amazon and Shein, there is much less risk than dealing with a small vendor or individual.

Search for online references to the seller besides their own website.

Look for reviews on sites like TrustPilot and Google Reviews.

Look up their method of payment.

Payment tools like WorldPay, SecurionPay and Stripe are well respected internationally. Look up the payment tool integrated with the site. If you can’t find it online immediately, be suspicious.

Check their phone line and address.

If the business is real, they should answer a call professionally with the company’s name. Bear in mind, some scammers go to great lengths to simulate a real company with customer service and documentation. A front that seems legitimate is not a guarantee that you’ll receive your goods.

Look up their address online. If the seller is a purely online company, you may find their offices are not in a retail sector. Take note of their neighbours. If you can find contact details for a business listing in the same building or street, contact that company to confirm the seller’s address.

Do a PayPal verification.

International sellers are often registered on PayPal. Check if your seller has been a verified member of PayPal for a reasonable period of time.  To check the seller’s PayPal status, initiate payment (you don’t have to finalise it). On the “Check the details of your payment” page is a “seller’s reputation link.”

My parcel is taking long to arrive. What should I do?

International sellers often wait until orders to a specific county pile up so they can get a good rate on shipping. It is therefore common for these deliveries to ship a few days after you’ve placed your order.

Take note of the delivery period in the terms of sale. You should be able to find a delivery period stated on the seller’s website, or on the order confirmation you received when you first made the purchase. Parcels can get lost in transit, but the seller can’t be liable forever. Most international sellers give a delivery period of two or three months from the order date in which you may notify them of non-delivery.

If the estimated delivery date has passed and you’ve still not received your goods, request a replacement shipment or a refund immediately. Once the delivery period expires, the seller is off risk and doesn’t have to do anything about your order.

Track the delivery. Your seller should have sent a shipping notification (as per the example below) when your goods were sent out. This notification usually comes with instructions on how to track your parcel online, and a unique tracking number. If they do not offer this information within 2 weeks after you’ve places your order, contact them to ask for it.

Check your tracking information for an estimated delivery date. If this date has not passed, all you can do is wait. Parcels do sometimes get delayed in transit, so the estimated delivery date can change as the courier updates your tracking information.

Interpret international tracking information

Order placed

The seller has received your order details and payment. They now need to pick and pack the item(s) that you want at their warehouse.

Order shipped

Your parcel has left the warehouse and is with a freight or courier provider. Most likely it will be handed over at a few checkpoints.

Shipment cleared for export

Your parcel is ready to leave the seller’s country for international shipping.

In transit

Your goods are on their way to South Africa.

Shipment delay

Your parcel has not reached a particular checkpoint in time, but don’t panic, it is still on its way. Take note of the estimated delivery date, it will likely have been pushed a few days forward.  

Arrived SA

The parcel arrived at a South African premises controlled by the freight or courier provider. If you have not yet paid import tax, you should be contacted about it soon.

Shipment cleared for import

Customs has inspected your parcel and all taxes are paid.

In dispatch / Dispatched

The parcel is marked as ready for delivery. It will go out with the first available vehicle that delivers to your area.

Out for delivery

Get excited, your parcel is on a delivery vehicle and on its way to you.

Someone contacted me about import clearance, and they want me to transfer money. What should I do?

All international purchased must be cleared for import by South African Customs. This usually happens when the goods land in South Africa. Some sellers, like Shein, prefer to have the goods cleared for import prior to shipping so that there is no delay on arrival.

Clearing the goods requires that you, the importer, pay all the relevant import tax. This incudes import duties and import VAT. Courier and freight providers who carry small online orders often clear the goods on the importer’s behalf, and bill the importer for the tax. Most likely you’ll get an email from the courier company with an amount due, and instructions on how to pay them (see example below).

Customs-payment-notification

Do bear in mind that import duties are levied on all imports, regardless of whether you were the one who paid for it. If, for example, an acquaintance who lives abroad sends you a gift, you will most likely have to pay import duties on it.

You may need an import permit

If the item(s) you bought are regulated, you’ll need to have a permit ready for import clearance. Bear in mind this may take some time to arrange, so it’s best to get started before the goods arrive at import customs. Use our regulated goods directory to ensure you know the permit requirements of your import. If a permit is required, our permits department can assist in getting it for you.

How do I know I’m paying the courier for import tax, not some scammer?

Internet scammers have caught on to using a fake import tax payment email as bait for stealing money. If you receive an email asking for a customs clearing fee, and you don’t have a parcel on the way, don’t pay it.

If you are expecting an international online order, compare the email you received to the shipping notice from your seller. The emails should show corresponding courier names, tracking details and order numbers.

Check the amount they ask for. The import tax payable on a shipment will most likely be between 16.5% and 70% of what you paid for the import itself. If the amount they ask for exceeds the cost of the goods, be suspicious. You can contact the courier or freight providers’ call centre to confirm the payment details and the amount.  Don’t use any contact details provided in the suspicious the email to do so. Search for the courier company’s details online.

I didn’t know about the import duties when I placed my order. Do I have to pay it?

Paying tax on goods entering South Africa is mandatory. The rate (amount) of tax payable depends on the goods. Import taxes are usually not included with the price you see on an international seller’s website.

The duties on imports can be high, and it is your responsibility to know whether the purchase is still worth your while. Clothing, for example, generally incurs import duty of 40% or 45%. International sellers are not responsible for informing you of South African import tax rates.

If you refuse to pay the tax on your import, your shipment will be destroyed, and you cannot ask for a refund.

To determine how much import tax (import duty and VAT) you’ll pay on an order before you place it:

  • Check what rate of import duty applies to your order with our import duty directory.
  • Use these rates to calculate the amount payable with our import duty and VAT calculator.
  • Factor in that the courier company may change a deferment (admin) fee for doing the customs clearing on your behalf. This is usually a small percentage of the tax payable.

Do I need an import export license to place international online orders?

According to the Customs and Excise Act, you need an import export license under any of the following circumstances:

  • You import goods more than 3 times per year.
  • You import goods over the value of R150,000 within a year.
  • You import any quantity or value of goods with the intent to re-sell.
  • You make or receive international payments for goods through your bank account.

You may have already exceeded these limits without registering as an importer. But be aware, this does not mean you’re off the hook.

South African Customs may stop one of your shipments at any time and demand that you get registered according to their laws. If they do so, there is a good chance you will be fined and pay penalties for the delay in clearing your goods.

With an import export license you may import an unlimited amount of goods to an unlimited value. It is a once-off registration that involves no renewals or recurring fees. In short, there is no disadvantage to having an import export license.

Getting your import export license through us means you never have to leave your home or office, and you don’t have to deal with SARS directly. We’ll do all the hard stuff for you. It only takes 5-10 days, and approval is guaranteed.

Find more help with your import logistics, original resources, leading-edge training, and assistance with customs licenses on Trade Logistics.

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About the author

Frieda-Marié de Jager

Marketing Manager 

Frieda-Marié started her career in digital and content marketing in 2013. In her role as marketing manager, she creates e-books, guides, blog posts, and newsletters on international trade for Trade Logistics.

She also writes and develops online training material on import and export.

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